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Avalanche tries to resist despite the daily underperformance of cryptos

Crptocurrencies were off to a bad start on Wednesday session. They lose the symbolic bar of 2,000 billion dollars. Bitcoin (-1.52%), Ethereum (-1.57%), all the Top giants show negative growth except Avalanche (AVAX) whose price shows an increase of 4.75% at the time of write this article.

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The “Ethereum killer” had made a great breakthrough during Tuesday’s session by recording an increase of 12.97%. Its price went from $82.03 to $92.67 at the closing price and even managed to jump to $97 during the session. Unfortunately, Avalanche is going to lose that momentum due to the overall crypto underperformance during the Wednesday session. 

The ninth cryptocurrency on the market owes its good performance to the explosion of activity in the DeFi ecosystem on its network . The TVL of the largest DeFi projects on Avalanche has seen a nice rise over the past few days.

 

Avalanche: DeFi Explodes On Its Network 

 

It should be noted that Avalanche is one of its famous crypto nicknamed “Ethereum killer”. Indeed, the AVAX network offers a much more scalable and scalable alternative to Ethereum. Founded in 2020, Avalanche offers the ability to execute 6,500 transactions per second without compromising the security of its network. Like Ethereum, it supports smart contracts, Dapps, DeFi and non-fungible tokens (NFTs).

Avalanche is currently ranked 4th among protocols with the largest TVL (Total Locked Values) behind Ethereum (127.7 billion), Terra (16.1 billion) and BNB Chain (13.1 billion). Its TVL is around 11 billion.

According to data provided by DeFi Llama, locked values ​​on projects in the Avalanche ecosystem have been increasing over the past 24 hours. Aave, Trader and Benqi saw their TVL progress respectively by 4.3%, 6.5%, and 4.5% in one day. 

What About The Price Of The AVAX Token?

 

Avalanche tries to resist despite the daily underperformance of cryptos
Price development of AVAX/USDT

AVAX had a great ride in Tuesday’s session. It even reached a three-week high with its rise towards $97. As can be seen on the chart, this daily performance had allowed it to extricate itself from the bearish zone drawn with the blue line. Its current price exceeds the SMA-20(78.96$) and the SMA-50(84.13$). This reinforces the idea that AVAX is no longer in a downtrend.

With the Fibo retracements, we can see that Avalanche has found a very nice support at 0.382 (important statistic in a downtrend). It is this support line that completely ousted it from the bearish zone. The volume numbers tell us that buyers have won back. AVAX’s intraday trading volume increased by 42.88% in the past 24 hours to $1.62 billion. 

Currently, the token is struggling to preserve the 0.5 fibo but will it really be able to hold on when we see this little red daily candle that is building at its Price Action level. Especially since the RSI indicates the outbreak of a downward divergence.

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